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Bond yields hit the highest level in years as debate continues

MarketWatch notes yields reflect the market’s estimate of the average federal funds rate over the next 10 years, and one strategist sees bonds as fair value but not yet cheap.

Reported · Written up by our desk · Economy

Bond yields have risen to their highest levels in years, prompting a renewed debate over whether investors should view them as attractive or still overpriced, MarketWatch reports.

According to the outlet, yields are influenced by the market’s estimate of the average federal funds rate over the next decade, along with compensation for the risks involved in predicting that rate path.

MarketWatch says one view from Barclays is that bonds are at fair value, but not cheap enough to be an obvious bargain yet.

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